SIDBI claims consortium of 6 PSBs hold 56% stake in Capita World

Amid the row over a private entity handling the 'loan in 59 minutes' portal for micro, small and medium enterprises, SIDBI has claimed that a consortium of public sector banks led by it hold 56 per cent stake in the firm, thereby giving it a public character.

"A consortium of six public banks led by SIDBI held 56% in the fintech company @capita_world which gave it a public sector character," Small Industries Development Bank of India said in a tweet.

The Congress Sunday accused Prime Minister Narendra Modi of benefitting "friends" by promoting private and crony capitalists at the expense of public institutions and demanded an independent judicial body probe into the new 'under 59-minute loan scheme' for MSME sector.

Congress leader Gaurav Vallabh demanded that the affairs of portal 'www.psbloansin59minutes.com', processing loans to small industries, be fully investigated and its contract with the government should be cancelled as he alleged a "scam" into the entire matter.

The Congress leader alleged that the web portal is supported by public sector institutions such as SIDBI and PSU banks as partners, even though it is owned by Ahmedabad-based private company CapitaWorld Platform Pvt Ltd.

There was no immediate response available from either the government or the ruling BJP over the charges made by the Congress.

Vallabh alleged that the prime minister launched a new facility for MSMEs alongside a slew of measures for the sector, which incidentally stays battered for a long term due to demonetisation.

He said a platform to facilitate quick loans was launched on November 2, 2018 with 'pomp and promotion show typical in nature of various types of propaganda of this government'.